China: Coal production in Shanxi hits record low in Mar'24

Shanxi, China's leading coal-producing province, recorded its lowest raw coal production for March since July 2020, totalling 94.32 million tonnes (mnt) , marking a 21% y-o-y decrease, as per National Bureau of Statistics data.

This decline aligns with industry expectations, spurred by regulatory efforts to curb overproduction and illegal practices, exemplified by a joint notice issued by three Shanxi government authorities in February. Major coal groups like Lu'an Group and Shanxi Coal International Energy Group have scaled back operations, with Shanxi aiming to cut coal production by 40 mnt in 2024 due to safety concerns.

Despite efforts to stabilise production around 1.3 bnt representing a 75 mnt decrease from 2023, Shanxi's cumulative first-quarter production witnessed an 18.9% y-o-y decline, signaling the province's commitment to regulatory directives. Large miners, including Jinneng Holding Group and Shanxi Coking Coal Group, reported substantial output decreases, whereas Shandong Energy Group saw a notable increase.

Excessive production in recent years has led to safety hazards, prompting a shift towards prioritising safety and sustainable development. Shanxi has intensified efforts in intelligent mining, technological innovation, and industrial restructuring to transition to a more diversified and sustainable economy.

Despite initial declines, coal production is projected to rise later in the year to meet the 1.3 bnt target.